Short-term Lets: Regulation

Joe Powell Excerpts

Thursday 12th September 2024 Westminster Hall

[Joe Powell (Kensington and Bayswater) (Lab)]

I congratulate my hon. Friend the Member for Cities of London and Westminster (Rachel Blake) on securing this debate and giving the subject the attention it deserves. We obviously share a border, but we also share an office in this place that, with its high ceilings and windows, comfortable sofas and views of Whitehall, I am sure would fetch a very high price if it were a short-term let. I hope we can agree that we will not be doing that in our period of sharing an office.

When I was knocking on doors during the general election campaign, the issue of short-term let regulation united constituents in South Kensington, North Kensington, Bayswater and Lancaster Gate. That was due to the current effective free-for-all with weak rules that are barely enforced, leading to issues that had very real and personal consequences for them and their families. It was not just the antisocial behaviour, noise and associated crime, but the violations of building insurance, mansion block rules and tenancy agreements, which had very real impacts on service charges and their day-to-day living in flats. I therefore agree with many of the speakers in the debate that there must be a middle ground where we can find sensible regulation that allows a destination like Kensington and Bayswater to continue to welcome millions of tourists from around the world, but with a system that can also help tackle our housing crisis.

To give hon. Members a sense of the scale of the problem, I share councils—Kensington and Chelsea and Westminster—and it is estimated that more than 5% of properties in both those council areas have been listed as short-term lets. As my hon. Friend the Member for Cities of London and Westminster said, the latest estimate in Westminster is 13,000. It is therefore important that any proposed changes related to change of use do not lock in those numbers, and that we sequence the reforms correctly.

There are some things that work and I praise the councils that, with limited tools, have been able to take some steps on enforcement, especially in Westminster. Kensington and Chelsea agreed a deal with Airbnb that would share data around some council blocks, so that leaseholders and council tenants in those blocks who might be in breach of their tenancy could be investigated. However, that also struck me as unfair when we have 40% of our residents in the private rental sector, where there is very little regulation.

As for solutions, I join others in calling for the Government to consider a licensing scheme, while thinking carefully about some of the lessons already learned. For example, the 90-day rule is totally unenforceable. With multiple platforms listing properties, and very small and limited—even non-existent—resources in local authorities to enforce the rule, we must ensure that fees are paid into the system to help cover the enforcement cost for local authorities, so that the cost is proportionate. We must also ensure that each property—not just each host—is registered, because individual properties have different consequences. This is an important part of tackling our housing crisis. I am delighted with the Renters’ Rights Bill, introduced yesterday, and I believe that if we also brought in a complementary package of reforms, it could make a real difference for constituencies such as mine.